Accounting system in commercial banks

The accounting system differs from facility to another, depending on the size and nature of business operations and data required by management and external bodies of supervision and control and evaluation of performance in addition to the books used and the method of proof used.

4) the properties of the accounting system in commercial banks:

1 - precision, clarity and simplicity in the design of the documents is important when designing the course

Documentary, to avoid repetition between the employee and another or between the Department and another (away from

Duplication) and to require the nature of the process of entering more than one or more staff from the Department of

So that the employee's next or the next section to supplement and review the work of the employee or

The previous section.

2 - speed in the preparation and processing of data to meet the needs of the Bank's management and external devices.

3 - the division of labor between the Bank staff and the responsibility both of them in particular and the separation

The accounting function for the rest of the Bank's operations and the operations of the Fund.

4 - the design must take into account the accounting system, administrative organization Bank

And divisions of the Interior and the nature of the relationship between the central administration of the bank and the branches on the one hand

And between departments and different sections of the department or the branches on the other.

5) components of the accounting system in commercial banks:

The accounting system depends on several factors essential to ensure its ability to achieve its goals, and are as follows:

1 - Group Documentary: one of the most important factors accounting system, the source of the first entry into the accounting system consists of two types:

A) internal documents are being prepared by the Bank itself, such as: documents and discount add-on.

B) an external documents that are prepared by clients such as: deposit slips and receipts for cash withdrawals.

2 - book group: book group differ maintained by commercial banks according to the different accounting method used in the recording of operations in each bank is the most common in the banking system the way English and French way.

3 - chart of accounts: A list of codes or account numbers used in the economic union or group of homogeneous units of activity classified in a manner usable and easily through which is the follow-up accounts and changes in them when needed.

4 - Tools of Financial Analysis and Control: The controls in the accounting system in the method that is by which to measure actual performance and compare the plans or standards specified in advance, as reflected in the careful design of the session of the documentary is to allow him to manage the economic union in carrying out its responsibilities in maintaining the assets and the protection of the rights of others This is known as internal control, which extends to include all operations of the Unit was an accounting of economic or administrative.

5 - periodic reports (accounting): The accounting system at the Commercial Bank the only way that will enable the Bank's management or dealing with him from the outside to stand on its financial position and its ability to Fa its obligations and functions and by the wealth of instruments of control and financial analysis, which in the forefront of reporting accounting provided to the many internal and external parties to assist them in assessing performance and making many decisions, and can distinguish between two types of accounting reports for the purposes of oversight and evaluation of your child's performance in trade and by the nature of the target or the beneficiary of two types:

A) internal reports: It means the reports prepared by the Accounting Department for internal use in the bank, such as: planning budgets, activity plans, future, final accounts, balance sheet, the periodic reports as determined by the Bank, and may be reporting on all or part of the activitybeing in the bank.

B) external reports: the reports prepared by the Commercial Bank to meet the needs of external parties on different categories of data and information that you want to see it and from this data what they are binding on the bank under the laws and regulations prevailing such as data submitted to the Central Bank or the Ministry of Finance or the information wish to inform the Bank's management to others Kalamlae, investors and the media.

6) sections of commercial banks:

Different sections the bank's internal differences and diversity in jobs and services to customers some of them are directly linked to the customer, a technical divisions of the Bank as the administrative departments are governing the operations of the technical divisions and monitored and maintained accounts and records totals of accounting entries in the daily operations that take place in the technical divisions of the bank.

First: the administrative departments: the departments which are responsible for regulating the functioning of the bank, and determine the responsibilities of regulatory and according to the structure specified for the bank, and not to those sections specified number must be in each bank, but that this is linked to the volume of work at the bank and the number of technical sections and is made up of :

1 - DM 2 - Legal Affairs 3 - Investigation and Inspection

4 - 5 General Accounting - Department of External Relations 6 - Affairs Branch

7 - Publications 8 - 9 queries - Studies and Research

10 - PR 11 - Personnel 12 - Computer

13 - Archive 14 - credit facilities and advances

15 - Procurement and supplies and maintenance. (For example, but not exclusively)

Second: The technical divisions: the sections that lead the bank through his work and daily activity of customers for example:

1 - Department of the Treasury 2 - Section 3 current accounts - deposits Section 4 - Department of clearing

5 - Department of securities 6 - Department of Commercial Paper 7 - Department of documentary credits

8 - Department of Letters of Guarantee 9 - Department of remittances and foreign operations

10 - Rental Safes 11 - Department of Provident Fund 12 - Department of foreign exchange

7) sources, uses of funds in commercial banks:

First : Sources of funding: banks, which rely to engage in activity on the two types of funding sources.

1 - internal sources of funding: The property rights, which includes paid-up capital plus reserves, and these sources usually represent a small percentage of the total funds in commercial banks (10%) of the total funds invested, "the bank's resources."

2 - external funding sources: these sources and provides the bulk of the funds needed to run the bank and to its various functions, and include external sources:

1) loans from the central bank to ensure assets.

2) deposits from customers, whether on current accounts or for or the Provident Fund.

3) loans from commercial banks.

4) the issuance of long-term.

Second: The uses of funds (financial resources): -

1 - Providing loans and advances.

2 - Investments, including contributing to the economic projects, or buy shares in order to obtain profits or trading of these shares in the stock market or invest in government bonds and discount commercial paper.

3 - Stocks (assets) cash which is the cash held by the bank as a reserve to protect the rights of depositors, which in its treasury to meet the daily banking operations with local banks or foreign.

4 - fixed assets and is the set of real estate owned by the Bank and its activity is practiced in addition to other fixed assets such as: furniture, cars, computers, machinery and electronic devices, means of transport.